LDC pledges to revive Antler after £15m pre-pack deal
NORTH West luggage brand Antler has been sold via a pre-pack administration to buyout firm LDC for around £15m.
The transaction will secure around 300 jobs at the Bury-based company, which had debts of around £25m, and was previously owned by Barclays Private Equity.
The long-drawn-out process began last autumn with the appointment of KPMG Corporate Finance at the behest of Antler’s lender, Bank of Scotland.
This followed a breach of the banking covenants at the company in 2008 as a result of a slump in sales and high costs to service its debt.
Despite more than 20 expressions of interest, including bids from turnaround specialist Endless, and NGBI Private Equity, a solvent sale was not possible due to a deficit of £8m in one of the company’s pension funds.
It is expected that the Government’s Pension Protection Fund will be asked to provide a safety net for those affected.
A previous deal to sell to LDC fell down eight weeks ago, but the transaction was resurrected this week.
Most recently-filed accounts for 2008 showed that Barclays Private Equity was owed £16.8m in unsecured loan notes, while £14.4m was owed to Bank of Scotland. The latter figure is understood to have been reduced to around £10m.
Although exact terms were undisclosed, it has been rumoured that LDC has invested around £10m of equity
LDC has installed David Benjamin, a former chief executive of pottery brand Royal Worcester, as Antler’s new CEO.
The new owners plan to consolidate Antler’s position in the UK luggage market and accelerate sales in several major international markets including the US, Australia and Far East.
Mr Benjamin said: “With the backing of LDC and Lloyds TSB, a highly-capable management team and a sound capital structure, we now have a fantastic opportunity to invest in our brands, continue developing our market-leading luggage range and drive retail distribution in the UK and key international markets.
“The acquisition is an excellent outcome for our dedicated employees, loyal customers and trusted partners, whose continued support we recognise and value greatly.
“This is the start of a new chapter for one of Britain’s best loved brands.”
Chris Hurley, investment director who led the transaction on behalf of LDC, said:
“Now, with the right financial headroom to execute its growth strategy, the company is well placed to take advantage of a recovery in the sector and fulfill its potential at home and overseas.”
Jonathan Boyers, head of corporate finance for KPMG in the North added: “We’re delighted to conclude a transaction which both safeguards jobs and ensures the long-term future of the Antler brand.
“From the outset, there was a high level of interest in the business, which is testament to the strength of the brand and the profile of the business.”
Additional funding was provided by Lloyds TSB Corporate Markets acquisition finance.
